H1 sales reached $29.50 billion, up 7%
TCF POST Report
FRAMINGHAM, Mass., Aug. 19, 2026 — The TJX Companies delivered stronger-than-expected second-quarter Fiscal 2027 results, with its off-price apparel and home-fashion business benefiting from solid consumer demand, strong merchandise availability and improving margins.
TJX reported net sales of $15.18 billion for the quarter ended Aug. 1, 2026, up 5% year over year, while consolidated comparable sales increased 4%, ahead of its plan. Net income rose to $1.52 billion, from $1.24 billion a year earlier, while diluted EPS increased 24% to $1.36. Excluding a $0.14 benefit from tariff refunds, adjusted EPS rose 11% to $1.22.
For the first half, sales reached $29.50 billion, up 7%, with comparable sales increasing 5%. Net income rose to $2.85 billion from $2.28 billion, while adjusted diluted EPS increased 19% to $2.41.
Apparel business remains central to growth
TJX’s core U.S. apparel operations under Marmaxx — comprising TJ Maxx, Marshalls and Sierra — generated $9.11 billion in second-quarter sales, up 3% from $8.84 billion a year earlier. Comparable sales increased 1%, below the group’s overall 4% gain, indicating that apparel growth in the largest U.S. division was positive but more moderate than elsewhere in the portfolio.
Marmaxx nevertheless remained the company’s largest profit contributor. Segment profit increased to $1.42 billion from $1.25 billion, while its reported segment profit margin reached 15.6%. Excluding the net benefit associated with tariff refunds, the margin was 14.2%. The company said sales at Marmaxx were below expectations in the second quarter, but noted that the division had shown improvement at the beginning of the third quarter. TJX also highlighted continued strong availability of branded, quality merchandise, providing the company with opportunities to refresh assortments ahead of the fall and holiday seasons.
Canada and international apparel operations outperform
The strongest comparable-sales performances came from TJX’s international and Canadian businesses.
TJX Canada posted a 6% comparable-sales increase, with quarterly sales rising 6% to $1.47 billion. Segment profit increased to $229 million from $221 million. On a constant-currency basis, segment profit margin was 16.3%. TJX International, covering Europe and Australia, delivered a 7% comparable-sales increase. Sales climbed 11% on a reported basis to $2.09 billion, or 10% on a constant-currency basis. Segment profit increased to $135 million from $99 million, although its adjusted segment profit margin of 7.3% remained considerably below the company’s North American operations.
The international performance provides an important growth counterpoint to the more subdued comparable-sales performance at Marmaxx, particularly as TJX continues to expand its global store base.
Strong merchandise availability supports off-price model
TJX said the availability of branded, quality merchandise remained outstanding, a key advantage for its off-price model. Total merchandise inventories stood at $7.9 billion at Aug. 1, compared with $7.4 billion a year earlier. Inventory per store was up 2% on a reported basis and 3% on a constant-currency basis.
The company said the inventory position leaves it well placed to introduce fresh assortments across stores and online during the fall and holiday shopping periods. This is particularly relevant to its apparel business, where rapidly changing branded and designer merchandise is central to the customer proposition.
TJX describes its model as offering quality, fashionable, brand-name and designer merchandise generally 20% to 60% below comparable full-price retailers’ regular prices. Its portfolio spans TJ Maxx, Marshalls, Sierra, Winners and TK Maxx, among others.
Margins strengthen, but tariff refunds played a role
TJX’s second-quarter pretax profit margin increased to 13.3% from 11.4%, while gross margin rose to 33.4% from 30.7%. The company said the gross-margin improvement was driven by higher merchandise margin.
However, the results also benefited from tariff refunds. TJX received $331 million in IEEPA tariff refunds, partly offset by $112 million of incremental compensation accruals, producing a net pretax benefit of $219 million. Excluding these effects, adjusted pretax margin was 11.9%, still up 0.5 percentage point year over year.
This distinction is important for assessing the underlying apparel and retail performance: while tariff refunds boosted reported profitability, the business also delivered underlying improvement through merchandise margins and sales growth.
Footwear benefits from TJX’s broad branded assortment
The release does not provide a separate footwear revenue figure, so footwear performance cannot be quantified independently from the company’s reported results. However, footwear forms part of TJX’s broader apparel-and-fashion merchandise proposition, alongside branded and designer merchandise sold through its off-price banners.
The company’s continued emphasis on fresh branded merchandise availability is therefore relevant to both apparel and footwear categories. Management said merchandise availability remains strong and that initiatives are in place to drive traffic and sales during the upcoming fall and holiday periods.
TJX expands store growth ambitions
TJX increased its store count by 23 locations during the quarter to 5,285 stores, with total selling space rising to 137.9 million square feet. The network includes 1,359 TJ Maxx stores, 1,267 Marshalls stores and 156 Sierra stores in the U.S., along with Winners and Marshalls in Canada and TK Maxx operations across Europe and Australia.
The company plans to accelerate store-opening growth to 4% beginning in Fiscal 2028 and raised its long-term global store target by 500 locations to 7,500 stores across its existing banners and countries.
Outlook remains positive
TJX expects third-quarter comparable sales to increase 2% to 3%. For the full Fiscal 2027 year, it continues to forecast comparable-sales growth of 3% to 4%, while raising its pretax profit margin outlook to 12.3%-12.4% and diluted EPS guidance to $5.31-$5.36. Adjusted EPS, excluding an expected $0.16 tariff-refund benefit, is projected at $5.15-$5.20.
Overall, TJX’s second-quarter performance points to continued resilience in the off-price apparel market. While the company’s largest U.S. apparel division, Marmaxx, delivered comparatively modest comparable-sales growth, stronger performances in Canada and international markets, improved merchandise margins and robust inventory availability helped support the group’s results. The planned acceleration of store expansion also signals confidence in the long-term potential of its value-focused apparel and fashion model.
